Govt Commences Delisting of MTNL for Merger With BSNL: Report

The merger process of BSNL and MTNL is expected to take around two years, with the proposal to merge the operational business of MTNL with BSNL. According to the proposed plan, this includes wireline, wireless, and the enterprise business, along with the operational assets of MTNL's telecom business.

Highlights

  • As a first step, MTNL will be first delisted from the foreign exchange.
  • Shares of MTNL will be delisted from Indian stock exchanges as well.
  • Mahanagar Telephone Nigam Limited (MTNL) will be divided into three parts per the merger plan.

Follow Us

Govt Commences Delisting of MTNL for Merger With BSNL: Report

The Government has started the process of merging Mahanagar Telephone Nigam Limited (MTNL) with Bharat Sanchar Nigam Limited (BSNL). To facilitate the same, the centre has started the process of delisting Mahanagar Telephone Nigam Limited (MTNL) from the stock exchanges.




Also Read: BSNL Reduces Data Benefit on Its Popular Night Unlimited Prepaid Plan

As a first step, MTNL will be first delisted from the foreign exchange, according to a Financial Express Report, which cited people familiar with the matter. MTNL first listed its American Depository Shares (ADSs) in the New York Stock Exchange (NYSE) in 2001 that were taken down later and, consequently, listed on the OTCQX International market in 2013.

The merger process of BSNL and MTNL is expected to take around two years, with the proposal to merge the operational business of MTNL with BSNL. According to the proposed plan, this includes wireline, wireless, and the enterprise business, along with the operational assets of MTNL's telecom business. Furthermore, shares of MTNL will be delisted from Indian stock exchanges as well, with the Government acquiring 90% of the shares of MTNL.

MTNL is Divided into Three Parts for Merger

Mahanagar Telephone Nigam Limited (MTNL) will be divided into three parts per the merger plan. The first will comprise MTNL's operations, staff and operational assets. The second part will include MTNL's other assets and liabilities, including the spectrum MTNL holds. The third segment will consist of Mahanagar Telephone Mauritius (MTML) operations, which are currently operationally profitable. In addition, MTNL's liabilities will not be transferred to BSNL, and BSNL has appointed Deloitte as a consultant for the process.

"BSNL will take over staff and operational assets, and operations of MTNL Mauritius, whereas MTNL will continue to hold other assets and liabilities including the spectrum," a government official was quoted in the Report, who added that BSNL will not take over the spectrum available with MTNL.

Also Read: BSNL Prepaid Trending Plans Right Now in March 2023

In July of last year, the Cabinet approved a revival package worth Rs 1.64 lakh crore to aid the struggling BSNL and MTNL. This was in addition to the Rs 69,000 crore rescue plan that was implemented in 2019. According to a recent report, BSNL has started getting equipment from the TCS-led consortium and is targeting to launch 4G in April.

Reported By

Aparna, from a journalism background, closely follows the developments in the telecom Industry.

Recent Comments

PARAG SHAH :

vodafone should not raise rates , as they onlyhave 4g.

Vodafone Idea Brings New Rs 19 Plan

Santosh Kumar Pal WB :

It's only good for Jio and Airtel users for their 5g smartphone but most people are 4g smartphone users in…

Jio Leads Wireline Subscriber Addition in February 2024: TRAI

Santosh Kumar Pal WB :

Jio and Airtel both lead in lndian telecom sector because of their expansion of FTTH broadband connection. Vi lost their…

Is Fixed Broadband the Next Big Opportunity for Telcos

Santosh Kumar Pal WB :

BSNL should join in this race with the partnership with lSRO. But l very curious whether Elon musk starlink will…

Indian Govt Not in Hurry to Allocate Spectrum for Satcom:…

Santosh Kumar Pal WB :

All lndian cable tv operators need DOCSlS 4.0 technology for their good quality broadband connection.

Rogers Partners With CableLabs to Advance 5G and 10G Network…

Load More
Subscribe
Notify of
4 Comments
newest
oldest most voted
Inline Feedbacks
View all comments